Novig Sues Wisconsin Attorney General Over Legality of Sports Event Contracts

Novig, a sports-focused prediction market platform, sued Wisconsin officials before the state could bring its own case.

Crypto news outlet The Block reported on Aug. 16 that Ludlow Exchange LLC, Novig’s operating subsidiary, filed a 45-page complaint in the U.S. District Court for the Western District of Wisconsin against Attorney General Josh Kaul and state gaming official John DeLett. Novig launched its event-contract service for Wisconsin users shortly before filing the complaint.

The preemptive suit follows Wisconsin’s April lawsuits against Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase, which alleged that sports-related event contracts violate the state’s ban on commercial gambling. Novig said it believed Wisconsin was likely to take similar enforcement action against the company.

Unlike Kalshi and Polymarket, Novig offers only sports-related contracts and does not list contracts tied to international news or public statements. It also restricts users to those 21 and older. Chief Executive Officer Jacob Fortinsky told WIRED that younger investors are especially vulnerable to irresponsible behavior and financial ruin, explaining the reason for the age limit.

Novig argues that its sports contracts qualify as swaps under the Commodity Exchange Act and therefore fall under the Commodity Futures Trading Commission’s exclusive jurisdiction. The CFTC approved Ludlow Exchange as a designated contract market, or DCM, on June 16. Wisconsin, meanwhile, argues that contracts tied to sports outcomes constitute betting under state law regardless of the exchange’s federal status. The CFTC separately sued Wisconsin officials, but a federal judge denied the agency’s request for a preliminary injunction in July.

Wisconsin is the fifth state where Novig has filed a preemptive lawsuit since Aug. 4. The company previously brought similar suits in New York, New Mexico, Massachusetts and Washington as it expanded its service nationwide and continued its legal push. Separately, Novig signed a multiyear exclusive partnership with the New York Mets. The Mets are the first Major League Baseball team to enter a direct partnership with a prediction market platform.